May 30, 2008

$2.99 A Gallon (Part 2)

Quick follow up on the big auto makers using gas as an incentive to purchase cars: Brandweek is doing a feature article on it this week, here’s the link.

Some interesting takeaways:

– Chrysler’s showroom traffic is up 10-20%, web site activity is up 25%

– In May 2007, gas mileage was stated the number one influence for new car buyers (J.D. Power & Associates)

– Suzuki’s free gas program, which I had seen on television and since forgotten, is also doing well. Their selling rate was up 9%, although only 1/4th of the buyers are taking the 0% financing and summer of free gas.

– Other companies like GM aren’t jumping on the bandwagon with similar tactics but are focusing on the idea of miles per gallon.

This isn’t going away. With petrol resources in decline, prices of gas will only go up and up some more from here. Car makers will continue to push fuel incentives and aspects of their products. The real winner is the company that can alter the way we look at transportation; develop products that offer us the same ends with new means. I think I’m overly simplistic in my view points here, but sometimes that’s the best way to look at things.

I’m much more interested in the things Tesla is doing right now. Now if they can only make something affordable that looks like my Saab Nine Three.